The currently low cost of oil has raised questions about the future of clean energy deployment and climate action. The current drop in oil demand—caused, in large part, by severe reductions in travel due to the coronavirus—combined with the Saudi-Russia oil price war has simultaneously, if temporarily, lowered greenhouse gas emissions (GHG). However, the drop in GHG emissions is likely to be unsustainable in the long term.

The corona virus crisis is affecting a wide range of energy markets – including coal, gas and renewables – but its impact on clean energy is particularly uncertain because it is stopping people and goods from moving around, dealing a heavy blow to demand for energy in general and transport fuels in particular.

The corona virus crisis is adding to the uncertainties the global oil industry faces as it contemplates new investments and business strategies, and among the benefits of the crisis is the dependence on clean energy helps tackle our climate challenge.

CO2 emissions may fall this year as a result of the impact of the coronavirus on economic activity, particularly transport. But it is very important to understand that this would not be the result of governments and companies adopting new policies and strategies. It would most likely be a short-term blip that could well be followed by a rebound in emissions growth as economic activity ramps back up.

Real, sustained reductions in emissions will happen only if governments and companies fulfil the commitments that they have already announced – or that they will hopefully announce very soon. 

Governments can use the current situation to step up their climate ambitions and launch sustainable stimulus packages focused on clean energy technologies. The coronavirus crisis is already doing significant damage around the world. Rather than compounding the tragedy by allowing it to hinder clean energy transitions, we need to seize the opportunity to help accelerate them.